When it comes to domestic leasehold property in Exeter, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Residents in Exeter with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Exeter with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Exeter can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Exeter lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie owned a high value apartment in Exeter being marketed with a lease of fraction over 59 years outstanding. Alfie informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr and Mrs. B Petit bought a one bedroom flat in Exeter in August 2012. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical homes in Exeter with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 collected monthly. The lease lapsed on 21 September 2089. Considering the 63 years left we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.
In 2009 we were phoned by Mr Charlie Campbell who, having took over the lease of a basement flat in Exeter in March 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Exeter with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2078. Taking into account 52 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus expenses.